The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Kamel Mahali

Makale detayları

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Yazarlar:

Kamel Mahali

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 40, pp.12-21

Belge Tipi:

Makale

Yayın Tarihi:

6/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001324472

pISSN:

2651-396X

Anahtar kelimeler:

Özet:

 This study aims to measure the impact of sectoral investment on economic growth in Algeria through an econometric model including a panel of eight key sectors over a 25-year period from 1996 to 2020. The study uses static panel data models based on several economic variables, where the dependent variable is Gross Domestic Product GDP and the independent variables are Gross Fixed Capital Formation GFCF and Compensation of Employees COE. The results indicate that the fixed effects model is the appropriate model; i.e., the investment in the different sectors does not have the same impact on economic growth in Algeria. After examining the validity of the fixed effects model, it was found that it suffers from cross-sectional dependence, autocorrelation, and heteroscedasticity of errors. This complication was eliminated by using fixed effects regression models with robust Driscoll and Kraay standard errors.

 This study aims to measure the impact of sectoral investment on economic growth in Algeria through an econometric model including a panel of eight key sectors over a 25-year period from 1996 to 2020. The study uses static panel data models based on several economic variables, where the dependent variable is Gross Domestic Product GDP and the independent variables are Gross Fixed Capital Formation GFCF and Compensation of Employees COE. The results indicate that the fixed effects model is the appropriate model; i.e., the investment in the different sectors does not have the same impact on economic growth in Algeria. After examining the validity of the fixed effects model, it was found that it suffers from cross-sectional dependence, autocorrelation, and heteroscedasticity of errors. This complication was eliminated by using fixed effects regression models with robust Driscoll and Kraay standard errors.

 This study aims to measure the impact of sectoral investment on economic growth in Algeria through an econometric model including a panel of eight key sectors over a 25-year period from 1996 to 2020. The study uses static panel data models based on several economic variables, where the dependent variable is Gross Domestic Product GDP and the independent variables are Gross Fixed Capital Formation GFCF and Compensation of Employees COE. The results indicate that the fixed effects model is the appropriate model; i.e., the investment in the different sectors does not have the same impact on economic growth in Algeria. After examining the validity of the fixed effects model, it was found that it suffers from cross-sectional dependence, autocorrelation, and heteroscedasticity of errors. This complication was eliminated by using fixed effects regression models with robust Driscoll and Kraay standard errors.

 This study aims to measure the impact of sectoral investment on economic growth in Algeria through an econometric model including a panel of eight key sectors over a 25-year period from 1996 to 2020. The study uses static panel data models based on several economic variables, where the dependent variable is Gross Domestic Product GDP and the independent variables are Gross Fixed Capital Formation GFCF and Compensation of Employees COE. The results indicate that the fixed effects model is the appropriate model; i.e., the investment in the different sectors does not have the same impact on economic growth in Algeria. After examining the validity of the fixed effects model, it was found that it suffers from cross-sectional dependence, autocorrelation, and heteroscedasticity of errors. This complication was eliminated by using fixed effects regression models with robust Driscoll and Kraay standard errors.

Makale detayları

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Yazarlar:

Kamel Mahali

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 40, pp.12-21

Belge Tipi:

Makale

Yayın Tarihi:

6/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001324472

pISSN:

2651-396X

Sectoral investment

economic growth

fixed effects model

random effects model

pooled data

Algeria

Sayı

Makale detayları

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Yazarlar: Kamel Mahali

Yayıncı: Istanbul University

Ana Başlıklar: Ekonometri (Diğer)

Dergi: EKOIST Journal of Econometrics and Statistics Issue 40, pp.12-21

Belge Tipi: Makale

Yayın Tarihi: 6/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001324472

pISSN: 2651-396X

Sectoral investment

economic growth

fixed effects model

random effects model

pooled data

Algeria

Sayı

Yazarlar:

Kamel Mahali

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 40, pp.12-21

Belge Tipi:

Makale

Yayın Tarihi:

6/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001324472

pISSN:

2651-396X